Sydbank (SYDB) Q4 2024 earnings summary

Executive summary

• Net profit of DKK 2,762m for 2024, with a return on equity (ROE) of 18.6% after tax, down from 23.6% in 2023.

• Core income rose by 2% year-over-year to DKK 7,227m; trading income was DKK 268m.

• Costs (core earnings) increased by 6% to DKK 3,312m compared to 2023.

• Impairment charges totaled DKK 595m, with a significant Q4 charge related to a single corporate client.

• Proposed dividend of 50% of profit (DKK 26.88/share) and a new DKK 1,350m share buyback in 2025.

Financial highlights

• Total income up by 2% year-over-year to DKK 7,495m.

• Earnings per share (EPS) at 50.9, down from 58.8 in 2023.

• Investment portfolio earnings reached DKK 73m for 2024.

• Loans and advances stable at DKK 82.5bn; deposits increased by DKK 1.9bn in Q4 2024.

• Total credit intermediation rose by DKK 0.8bn in Q4 2024.

Outlook and guidance

• 2025 profit after tax expected in the range of DKK 2,200–2,600m.

• Assumes a 1pp interest rate cut by Danmarks Nationalbank in 2025.

• Outlook subject to financial market and macroeconomic uncertainties, especially regarding impairment charges.